The Argosy Minerals Limited (ASX: AGY) share price is climbing today following a construction update at the Rincon Lithium Project.
At the time of writing, the lithium miner's shares are swapping hands for 9.7 cents apiece, up 4.30%.
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Construction update
Argosy shares are in the green today. This follows a positive investor sentiment on the company's progress to date.
In its announcement, Argosy advised that 10% of construction works have been completed to bring the Rincon Lithium Project online. The development of the modular 2,000 tonnes per annum of lithium carbonate production plant is currently on schedule. Argosy is also targeting to achieve the first commercial production of lithium from mid-2022.
Argosy holds a 77.5% interest in the Rincon project, located in Salta Province, Argentina. The mine is situated within the 'lithium triangle' – the world's dominant lithium production source.
Argosy noted that major works consisting of earth-moving equipment, site construction of the plant, and associated installations have advanced. As such, Argosy also provided a snapshot of the current progress:
- 8% of earthworks/land movements completed.
- 8% of site works completed (site camp/accommodation, laboratory and office, and other works).
- 16% of the brine system completed (pumping station and plant settling ponds).
- 16% of the process plant completed (plant equipment acquisition and plant warehouse).
- 3% of utilities and associated services (vapour system, communication system and ancillary services).
- 3% plant commissioning works completed (raw materials acquisition and team development works).
Additionally, the entire build stages are expected to run throughout the current calendar year. Thus, completion will be around early 2022.
Once the construction phase is finished, Argosy will begin plant commissioning, test-works, and ramp-up over a 4-month period. Should everything go smoothly, the company will then start production operations.
Management commentary
Argosy managing director, Jerko Zuvela touched on the company's latest developments, saying:
The Company's Puna operations team have started positively with the 2,000tpa lithium carbonate production operation construction and development works.
We are excited as we continue our works to transform Argosy into a battery quality lithium carbonate producer and cashflow generator, and further progress toward the 10,000tpa enlarged commercial scale development. We look forward to a significant near-term growth phase with increasing development activity at the Rincon Lithium Project.
Argosy share price summary
In the last 12 months, the Argosy share price has gained around 130%, with year-to-date up 20%. The company's shares rose strongly at the start of the calendar year, before profit taking took hold. Nowadays, Argosy shares have been moving sideways since the start of March.
On valuation grounds, Argosy has a market capitalisation of roughly $121 million, with 1.25 billion shares on issue.
